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The cost of accomodation in Paris has always meant the French capital has never been the most affordable city for young people. But that could soon change with plans announced to open Paris's biggest youth hostel that will sleep almost 1000 people.

Generator, the world’s fastest growing hostel chain, has announced plans to build its biggest project yet, and has chosen the French capital as the location.

The new hostel will open in the former Allianz Insurance building on Place du Colonel-Fabien in the heart of the trendy 10th arrondissement.

The project, to be completed by the end of 2014, will be the largest youth hostel in the capital, able to cater for up to 950 guests in both dorms and private rooms.

“For us Paris is a must-have destination” Carl Michel, executive chairman of Generator told The Local. “It ranks with London and Berlin as one of the top three youth travel city destinations,” he added.

Michel said one of the motives for Generator to open up their giant hostel in Paris was the “shortage of good quality, centrally located and affordable accommodation” in the city.

Prices for a bed at the hostel will start from €12 per person per night for an en-suite dorm room and from €25 per night for a private room.

Despite high prices of hotels in the city Paris does have an array of hostels with the top ranked hostels in the city on the Hostelbookers site are St Christopher’s Gare du Nord, St Christopher’s Inn Canal and The Loft Hostel Paris.

The new Paris hostel will be designed by Generator’s chief designer Anwar Mekhayech and will include Parisian features such as a communal area in the style of a bistro and Paris Metro-style tiling on the walls to give it a local feel.

Generator already owns eight other hostels: two in Berlin and one in Barcelona, Dublin, Copenhagen, London, Venice and Hamburg.

A ninth is due open in Rome in spring 2014, just a few months before the Paris opening. The company has plans to have more than 6, 400 beds in Europe by the end of 2014.